India, April 8 -- Representatives of European automotive industry have voiced strong concerns about the broader implications of the US tariffs, particularly the risk of trade diversion.
They highlighted the uncertainty these measures create for integrated supply chains, especially in the automotive sector, which span both sides of the Atlantic and are central to current business models.
Trade diversion occurs when a trade agreement leads to a shift in trade patterns, where consumption of goods or services shifts from a cheaper, more efficient producer outside the agreement to a more expensive, less efficient producer within the agreement.
In the wake of reciprocal tariffs announced by the United States, European Commission President Ursu...